Bridging BI with Our Business - IBM · Bridging BI with Our Business ... store, shift, cashier,...

Bridging BI with Our Business

Toa CharmRegional Head of BICC, Asia Pacific, HSBC

Chairperson, BISID, Hong Kong Computer Society

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� >20 Years of Management and Consulting Experience i n IT – Regional Head of BICC, Asia Pacific, HSBC– General Manager, BI, Oracle Greater China– General Manager, Kingdee Asia Pacific– Managing Director, Hyperion Greater China– Consulting Manager, JOS Technology, Jardine Pacific– Consulting Manager, Informix North Asia

� Advisory Roles in Professional and Academic Bodies– Chairperson, BI Special Interest Division, Hong Kong Computer Society– Advisor, Hong Kong Trade Development Council (TDC) - China Trade – Advisor, Hong Kong Polytechnic University – Department of Computing – Advisor, Hong Kong Baptist University – School of Business– Advisor, The University of Hong Kong – Information Systems Associations– Director, China International Enterprise Resources Mgt. Association

� Academic Background– Doctor of Business Administration (candidate)– Master of Arts (Business Administration)– Bachelor of Science (Computer Science)


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Agenda� Why BI Matters to Our Business?

� How Do We Find out the Answers without and with BI?

� Evolving from Reports to BI

� The Power of BI

� Lessons Learned from Our BI Journey

� Summary: – BI Best Practices– BI Special Interest Division of Hong Kong Computer Society– Recommended BI Books and Web Sites

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Why BI Matters to Our Business?

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Dear Bankers, Can We Answer These Questions Today?

Performance Management

IncreaseCustomerRetention

Customer Value Optimization

Bankers

Risk Management

ComplianceManagement

• How can I predict Customer Life Time Value ?

• Who can I effectively cross-sell to ? What is the best product to cross-sell ?

• Through which channels have I acquired my profitable customers?

• What are the behavioral patterns that lead to attrition ?

• What will make my customer most satisfied ?

• How can I timely identify branch service quality issues ?

• What is my profitability by lines of business and products?

• What are the touch points my customers access most ?

• Can I have day to day reporting by branch ?

• Can I track delinquent behavior ?

• Am I alerted when limits are breached ?

• Can I have an integrated view of market, operational and credit risk?

• Do I have an information framework to meet BASEL II requirements ?

• Can I quickly identify and track potentially fraudulent transactions ?

• Am I effective in preventing money laundering ?

and more questions….

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Maximize Customer

Relations/Mktg

Optimize Profit

Drive Accurate Inventory Decisions

Retailers

•How can I maximize in-store selection while minimizing inventory?

•Is it possible to have unit-driven demand to tailor assortments & space allocation at store/shelf level?

•How can I avoid deep discounting & improve the return on inventory investment?

•Can I incorporate revenue, inventory position & gross profit to maximize profitability by item/location?

•Can I perform multi-dimensional customer segmentation leveraging demographic info, prior history, campaign responses, etc

•How can I identify the best product/service offers to build loyalty?

Store Optimization

• How can I optimally rationalize real estate costs and store layout effectiveness?

•How do I optimize lease versus buy decisions?

Loss Prevention

•Can I track over/shorts by store, shift, cashier, register or any combination?

•Can I effectively monitor and ensure minimal returns, overrides?

Dear Retailers, Can We Answer These Questions Today ?

same for other industries like Telco, Manufacturing , Logistics, Trading, Tourism, etc.

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How Do We Find out the Answers without BI?

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Information Explosion

Lots of administrative and manual works

Lots of spreadsheets with lots of macros

??

?EMPLOY ACCOUNT_STATUSORDERSORDER_LINES

PRODUCTS

REGIONS

CUST SHIPPERSQUAL_NAME

POSITIONQUALIFICATION

POS_NAME

COUNTRIESSUPPLIERS

Inaccessible data sources scattered in your company

Lots of books & articles

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How Do We Find out the Answers with BI?

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Insight-DrivenDecisions Powered

by BI

Insight-DrivenDecisions Powered

by BI

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GIS

Real Time Monitoring

DashboardBalanced Scorecard

Metric AnalysisMulti Dimensional

Report

Strategy Map

Exception Based

Notification

Document Manager

Communication Thread

Web Enabled

Centrally ManagedAccess & Security

Common Metadata

Operational System

Integration/Data Integration

Automated Batch

Processing

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BI for Bankers

Balance Trend

Account Openings

Share ofWallet

DelinquencyAnalysis

HoldingsValue

FraudPrediction

Accounts Analytics

Service Analytics

Marketing Analytics

RelationshipAnalytics

Product and Sales

ExecutiveAnalytics

Churn Propensity

Customer Satisfaction

ResolutionRates

Service RepEffectiveness

ReferralsAnalysis

ServiceTrends

Campaign Scorecard

ResponseRates

CustomerLifetime Value

ProductPropensity

LeadsAnalysis

Loyalty andAttrition

Call Reports

Customer Satisfaction

AttritionTrends

Customer PortalAnalytics

MaturityAnalysis

Events Triggering

Product SalesTrends

Referralstracking

HouseholdPenetration

ProductBundling

ProductPropensity

ProductProfitability

BusinessPerformance

SalesPerformance

MarketingResults

ServiceEffectiveness

ProductTrends

AssetsValue

Addressing questions from the Front Office to the B ack Office

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BI for Retailers

Item Basket Analysis

Markdown Scorecard

Location Sales Productivity

Item Contribution

Comp Store Sales Analysis

by Dept

Promotional Performance

Merchandising Merchandising AnalyticsAnalytics

Store Operations Store Operations AnalyticsAnalytics

Category Category AnalyticsAnalytics

Loss PreventionLoss PreventionAnalyticsAnalytics

Customer Customer AnalyticsAnalytics

WorkforceWorkforceAnalyticsAnalytics

POS Flow by Transaction,

Item, etc

Hourly Sales Trend

Comp Store Analysis

Store Lane Type Comparison

Sales Per Sq Foot

Tendering Outlier

Sales Flash by Category

Top/Bottom 10 Sales Performing

Product Price History

Pack Sales –Contribution to

Item Sales

Product Cluster Analysis

Item Price Elasticity

Cashier Over/Short

Register Override

Employee Discounts

Store discounts

Location Override

Transaction Analysis by

Type

RFM Analysis

Customer Segment Migration

Anonymous Customer Basket

Analysis

Frequent Shopper Product Mix

Transaction y Customer

Customer Cluster Analysis

EmployeePerformance Trend

Employee Transaction

Summary

Employee Lane Type Comparison

Employee Customer Outlier

Employee Entry Method

Employee Entry Method

Addressing Questions from the Front Office to the B ack Office

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BI: Top of the CIO’s List

Gartner CIO Agenda 2007 – Top CIO Priorities

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BI: Critical Strategy for C-Levels

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0

60%

50%

40%

30%

20%

70%

10%

80%

Current % User Penetration

66%66%51%51%

33%33% 30%30%10%10%

ERP SCM CRM BI Tools

BIApps

2010 Seat Estimates0

60

40

20

80

100

Estimated User Potential

59 Million

ERPERP

CRMCRM

SCMSCM

BITools

BITools

BIAppsBI

Apps

98 Million

Sources: Goldman Sachs Estimates & Department of Labor

BI Market GrowthLow User Penetration and High User Potential

BI Market GrowthLow User Penetration and High User Potential

Lots of rooms for growthLarge # of licenses

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Evolving from Reports to BI

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BI Evolution Modelsource: SAS Institute

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Start

(Aspiration)

Half-Way

(Analytical

Company)

Journey Completed

(Analytical

Competitor)

Thomas Davenport’s “Competing on Analytics”

From Aspiration to Analytical Competitors (1 of 3)source: “Competing on Analytics”, Thomas Davenport

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Start

(Aspiration)

Half-Way

(Analytical

Company)

Journey Completed

(Analytical

Competitor)



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Start

(Aspiration)

Half-Way

(Analytical

Company)

Journey Completed

(Analytical

Competitor)

A D

ata-

Driv

en E

nter

pris

e

Developing a Culture of BI Best Practice and Community


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BI Assessment Methodology“ How well is your company doing in terms of BI?”

� 5 Levels of BI Evolution– Level 5: Innovate

• Expand top line

– Level 4: Optimize• Optimize bottom line

– Level 3: Integrate • Enterprise data warehouse

– Level 2: Consolidate • Departmental

– Level 1: Operate• Individual

Source: SAS

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Business Intelligence Evolution Model: Level 1

� Level 1: OperateInformation Maverick

– Focus on the individual– Information is personal power– No information standards– Legacy information tools– Personal productivity toolkits– Little benefit to enterprise

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� Level 2: ConsolidateSilos of Information

– Functional group focus– Information = political power– Departmental standards – Departmental tools

– Silos of information

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� Level 3: IntegrateThe Data Warehouse

– Enterprise focus– Informed view of operations– Enterprise standards – Enterprise information

architecture – Enterprise-wide information

access– Clear core business

processes & value chain

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� Level 4: OptimizeBottom-Line Focus

– Market alignment– Incremental improvement– Information to measure, align,

improve processes– Fact-based decisions – Adaptive information

infrastructure – Alignment/efficiency drives

market leadership

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� Level 5: InnovateTop-Line Focus

– Leverage value chain in new business areas

– New markets, products and business models

– Continuous innovation process and culture

– Prototyping ideas; driving best to market

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BI Evolution ModelMeasured along 4 critical dimensions

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Business Intelligence Evolution Model MatrixBusiness Intelligence Evolution Model Maturity Level

Human Capital Knowledge Processes

Culture Infrastructure

Level 1:

Operate

Execute assigned tasks

Personal and unstructured

Values individual performance

Offers tools for personal productivity

Level 2:

Consolidate

Participate in processes

Intra-departmental

Breeds functional competition

Offers functional independence

Level 3:

Integrate

Think globally and are empowered

Inter-departmental and structured

Encourages big-picture thinking and cooperation

Offers an enterprise view

Level 4:

Optimize

Collaborate and are flexible

Aligned to adjust with market demands

Fosters collaboration and adaptation

Adapts readily to market changes

Level 5:

Innovate

Strive to think out of the box

Flexible to accommodate disruptive change

Rewards creativity and diversity

Anticipates market changes and innovates

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Power of BI

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Insight-Driven Actionse.g. Analytic Workflows – Sales Analytics

Business Objectives /

Issues

GainInsights

Take ActionDrill to Opportunity to investigate, escalate

and intervene

Are opportunities large enough for me to

intervene?

What are the opportunities getting

stuck?

Are deals getting stuck in certain sales stages?

How’s the sales pipeline?

Manage overall sales performance

Drill to D

etail

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Real-time or Right-time BIe.g. Proactive Actions for SLA changes, Next Best-Bu y

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BI Embedded in Processe.g. Loan Rate Decision

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Management Dashboarde.g. Credit Risks Monitoring and Alerting

35

BI in Geographical Information Systems (GIS)e.g. sales turnover by provinces in China

Map of Mainland China

North Region of China

City of Beijing

Drill intoDetails

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Ubiquitous or Mobile BI (Anytime, Anywhere)

Anywhere Anytime

Access to any BI you need

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Optimization e.g. Real-Time Forecast and Analysis for Workforce

Time

Actual# of staff

Required# of staff

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“Search” versus “Discover”

Data Mining

Text Mining

DataRetrieval

InformationRetrieval

Search(goal-oriented)

i.e. traditional BI

Discover(opportunistic)i.e. Data Mining &

Text Mining

StructuredData

UnstructuredData (Text)

Text Analytic

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Business Drivers for Text Analytics

Retail

Identify the most profitable customers and the underlying reasons for their loyalty.Brand management

Finance

Retention of current customer base using call center transcriptions or transcribed audio.

Insurance

Identify fraudulent claims.

Track competitive intelligence.

Brand management

Life Sciences

Identify adverse events.Recommend appropriate research materials.

Manufacturing

Reduce time to detect root cause of product issues.Identify trends in market segments.

Telecommunications

Help prevent churn and suggest up-sell/cross-sell opportunities for individual customers.

Text Analytics has numerous applications in any industry

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Text Miner Text Analytic

Source: SAS

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Emerging BI Technologies� Predictive Analysis� BI Search & Text Analytics� Advanced Visualization (Cross-over of Digital

Entertainment and BI � Rich Reportlets� Web-based BI� Dashboards� Alert Notifications� Scorecards/KPI� Embedded BI in Operations� Report-based Interactivity� Microsoft Office Integration� Mobile BI� .. more

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Lessons Learned from Our BI Journey

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Key Challenges� Corporate Aspects

– Executive Sponsorship– Priority of BI Projects– Funding– Business Justification/Cases

� Local vs Regional vs Global Requirement

– Data Model – Tactical vs strategic choices– Silos of almost everything

• Data, Talents, Resources, Knowledge, Hardware, Software

� Data– Single Version of the Truth:

multiple data sources to multiple data marts

– Data Quality– Data Governance and

Stewardship – Data Capture– Lack of Data– Data Definition / Data Dictionary

� Standardization– BI Tools– S/W and H/W– Administration– Process standardization– Business definition of KPIs,

business items, values, etc.

� Employees– Data-Driven Culture– BI Knowledge and Training– Effective Use of BI– Innovative Use of BI– Lacking of sharing experience

(either success or failure)

� Skills of BI Team (more than IT)– Communication– Domain knowledge– Business Consulting– Promotion and Technology

Showcase

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Key Barriers of Strategic BI Deployment

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# 1# 2

# 3

Source: Cognos Office of Strategy – Standardization / BICC Research ( M.Dizekan)

Source: Cognos

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Key Components of Our BI JourneyAdoption of the Industry standards and best practices

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Ten Core Functions of BICC (Business Intelligence Competency Centre)

Source: Cognos

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Key Objectives of BICC

BICC Facilitates Strategic BI DeploymentSilos World

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BICC Case Study: Nedbank

� “The BICC delivers massive value. Speed to executionis increased by a factor of four to five times.”

� Our main motivation in setting up the BICC wasknowledge management: getting a core group of people in one place so that we could be sure of retaining key learnings and methodologies. This is the key to getting full value from technology.”

� “The challenge in establishing a BICC is to recruit people who offer the right skills, behavior, competencies and, above all, the right attitude!”

� The BICC has enabled Nedbank to integrate all of its SAS applications, which itself brings major productivity gains, and to adhere to IT standards while putting business benefits first. “The BICC ha s enabled Nedbank to achieve quick but sustainable wins on projects large and small,”

� Company: Part of the Old Mutual Group, Nedbank offers a wide range of wholesale and retail banking services through three primary business clusters: Nedbank Corporate, NedbankCapital and Ned bank Retail.

� Business Issue: Nedbank Retail wanted to capitalize on its massive information assets and investment in business intelligence software to expand business among profitable customers.

� Solution: In 2003, Nedbank Retail set up a BICC along side other competency centers. Its mission was to attract, develop and retain talented people with the skill sets required to maximize ROI on business intelligence projects.

� Benefits: Nedbank Retail has seen up to a fivefold decrease in implementation times on business intelligence projects for customer departments. It has also ensured that skills are shared and knowledge retained within the organization.

Simon MarlandChief Information Officer, Nedbank Retail

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Prioritization of BI ProjectsBusiness-Driven BI Value Creation

Pick those processes that BI can add values into:

� Management Processes– Planning, Budgeting, Performance Monitoring/Assessment, Process

Improvement, Cost Analysis, Optimization, etc.

� Revenue Generating Processes– Customer Segmentation, Campaign Management, Channel

Management, Sales Management, etc.

� Resources Processes– Product/Service Development, Order Management,

Manufacturing/Operations, Supply Chain, Purchasing, etc.

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BI Opportunity Map (BI Portfolio)

Why Do it?Easy Wins

High Risk/RewardPlums

RiskB

usin

ess

Impa

ct

Project AProject B

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BI and DW Platform Standardization

DM

Cube

Static

Dynamic

Event

ETL

Portal

Data Store LayerData Present

LayerData Access

Layer

Data Security Management

Meta Data Management

Client Layer

EDW

ODS

Premium

Transactions

Claims

Transactions

Commission

Transactions

Policy Info

Financial Transactions

Data Source Layer

Insured Info

Product Info

IBM DataStage IBM DB2

ETL

ETL

ETL

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BI Tools integrated with SOA

BI Integration with IT Infrastructure

OracleKerberosiPlanetMSFT ADNovellCustom Others ..

Oracle Data Integrator (Sunopsis)Oracle Warehouse BuilderInformaticaAscentialOthers ..

Any JSR 168 Portal Data Mining toolse.g. SPSS, SAS ERP, CRM, SCM, etc. Excel, Outlook,

Lotus Notes ..

Oracle RDBMSOracle OLAP OptionMicrosoft SQL Server & Analysis ServicesIBM DB2TeradataEssbaseSAP BWXML, Excel, Text

Portals Data Mining Applications Desktop Tools

Security Data Access Data Integration

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BICC Collaboration Site: Knowledge Sharing

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Promotion and Technology ShowcaseBuilding BI culture across the enterprises

Building

BI Culture

e.g. data forum,

BI Best Practice Award, BI

workshop, etc.

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User raise a call by Email or Phone

BICC User Support Workflow

BICC local team investigate

BICC regional team investigate

Escalate to Regional team

Application Team

Question related to background

job, Data Source

User Department Representative

Related to business definition

Reply user and Update Knowledge Base

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BICC User Helpdesk

Other BICC User Helpdesk Features:•Helpdesk Status Dashboard•Web-based Case Status Enquiry•More…

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Summary: BI Best Practices

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Top Ten BI Business Practices (1 of 2)

1. Measure success in multiple ways

2. Understand how to add values to key processes and making use of Luck, Opportunity, Frustration and Threat to kick start BI initiative and maintain them through the end

3. Gain executive support

4. Start with solid data foundation and continuously improve data quality, breadth and timeliness

5. Align BI strategy with business strategy

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6. Find the relevance for BI for every worker in the company as well as for customers and suppliers

7. Use agile development process instead of waterfall

8. Organize BI teams and experts with a focus on enterprise e.g. BICC

9. Standardize BI tools which meet both user and business

10.Fostering a culture of fact-based decisions and data-driven enterprise, discouraging data hoarding, promoting your successes and the applications, and present data visually

Top Ten BI Business Practices (2 of 2)

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Hong Kong Computer SocietyBusiness Intelligence Special Interest Division (BIS ID)� Professional and Career Development for BI and IT P ractitioners

– BISID helps members continue to further their professional qualifications through workshop and certificates program by working closely with local and foreign governing bodies, BI authorities and other professional associations.

� Values Creation for Businesses in Different Industr ies through the Best Use of BI – Business executives in different industries share and learn innovative and proven BI applications and

technologies that help them create values to their businesses.

� Bridging BI Professionals with Business Executives – Quarterly networking hours and social activities are held to foster interaction & experience sharing among

BISID members, HKCS members, other IT associations, business and professional associations.– The BISID members are usually BI experts/practitioners/researchers, business executives who are keen on

leveraging BI to add values to their business and and differentiate their companies from others, or simply those who are interested in BI.

� Access to BISID Knowledge Repository, Publication, Research on the latest BI Market Trend, Best Practices and Technology Develop ment.

– Authorized access to our BISID Knowledge Repository, our regular BISID Newsletter & publication– Invitation of annual Business Intelligence (BI) conferences, regular BI business and technology forums and

corporation visits

� Our current members mainly come from large multinat ional companies, local SMEs, major BI vendors and consulting firms and major uni versities

– Users: MTR, Jockey Club, HSBC, Cathay Pacific, Ericsson, etc.– BI Vendors: Cognos, Business Objects, SAS, Teradata, Informatica, etc.– Universities: CityU, PolyU, HKU, etc.

For enquiry, please contact Miss Sky Hui (Tel: 2834 2228 Email: [email protected])or visit our BISID web site http://www.hkcs.org.hk/ en_hk/sg/bisid/index.asp

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Recommended Books on BI� Competing on Analytics (2007)

– Thomas Davenport and Jeanne Harris

� Smart Enough Systems: How to Deliver Competitive Ad vantage by Automating Hidden Decisions (2007)

– James Taylor and Neil Raden

� Successful Business Intelligence: Secrets to Making BI a Killer App (2008)

– Cindi Howson

� The Profit Impact of Business Intelligence (2007)– Steve Williams and Nancy Williams

� Business Intelligence Competency Centers (2006)– Gloria J. Miller, Dagmar Brautigam, Stefanie V. Ger lach

� Business Process Management and The Balanced Scorec ard (2007)– Ralph Smith

� Business Intelligence for Dummies (2008)– Swain Scheps

� Introduction to Business Data Mining (2007)– David Olson, Yong Shi

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Recommended Web Sites for BI

� Key BI Portals– The Data Warehousing Institute www.tdwi.org– The Business Intelligence Network B-eye-network.com– Intelligent Enterprise www.intelligententerprise.com– DM Review http://www.dmreview.com/

� Key BI Vendors– SAS www.sas.com– Teradata www.teradata.com– Cognos www.cognos.com– Business Objects www.businessobjects.com– Oracle www.oracle.com/bi

Bridging BI with Our Business


Chairperson, BISID, Hong Kong Computer Society

[email protected]

Date post:	02-May-2018
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